CanGo Essay

Issue 1 No clear schema for expansion CanGo has had its success, and now they are looking into the future. Their question is, Whats vent to garter them grow? and as Liz said, Turn them into a mighty oak. CanGo recognizes that prongy out and delving into invigorated territory will be profitable and its favorite with investors since theyre thinking of going for an initial offering. The possibilities of adding e-books, streaming audio and video is rose hip but they also recognize that the online gaming industry is on the bare-assed edge for growth. With all of the brainstorming ideas CanGo has they do recognize theres a scarcity of resources such as capital and people. RecommendationThe direction team at CanGo is full of ideas related to expanding its product line. Liz has mentioned the possibility of E-books, harmony and video, and Andrew suggests online gaming. Expansion is just one topic, as the company is considering offering initial offering (initial globe offering). Th e brass is contemplating major decisions without professional guidance. The employees will soon be asked to juggle more responsibilities, without the appropriate resources. CanGo should seek additional consultation specialized to the objectives it wants to achieve.In addition, the company must consider the risk and where to allocate resources to be maximize profit. Furthermore, there will have to be some horizontal surface of advertising and marketing to devote chases. CanGo feels that the best way to handle new ventures is to use in-house employees. Pulling employees from jobs they are already doing will no interrogative sentence take away from quality. We recommend that Warren and Liz take into consideration the prospect cost of expanding at this time. Will the benefits outweigh the cost of expanding.Issue 2 No capital for expansion CanGo must consider how to combine its circumscribed resources to produce the best mix of goods and services. A cost-benefit analysis will help them measure the cost and the benefits correctly. They will need to think about 2 types of analysis (1) Marginal Analysis and (2) Cost-Benefit Analysis.Recommendation Performing a bare(a) analysis will examine how the costs and benefits change in rejoinder to their incremental changes in actions. Any additional action that CanGo does will grow about additional cost so, type of analysis will define if the expected benefits of their actions exceed the added cost. It was mentioned casually that the only source of capital as an IPO. This point was expounded upon by the poor sandwiches being provided.I dont think Warren made the comment to be rude, but to ornament the point that financial capitol is limited especially in terms of expansion. CanGo is generating interest in its industry and community. The time is ripe to offer an initial public offering. CanGo needs professional guidance in analyzing what is value and assess the possibilities of an IPO. It may consider taking adva ntage of its success in Japan. CanGos IPO does not have to be confined to its locality it has to start thinking international in scope. Its popularity in Japan alone may generate the capitol necessary to expand in product, personnel, and infrastructure.